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Literature Review of Shared Value: A Theoretical Concept or a Management Buzzword?

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Abstract

Porter and Kramer (Harv Bus Rev 84(12):78–92, 2006; Harv Bus Rev 89(1/2), 62–77, 2011) introduced ‘shared value’ as a ‘new conception of capitalism,’ claiming it is a powerful driver of economic growth and reconciliation between business and society. The idea has generated strong interest in business and academia; however, its theoretical precepts have not been rigorously assessed. In this paper, we provide a systematic and thorough analysis of shared value, focusing on its ontological and epistemological properties. Our review highlights that ‘shared value’ has spread into the language of multiple disciplines, but that its current conceptualization is vague, and it presents important discrepancies in the way it is defined and operationalized, such that it is more of a buzzword than a substantive concept. It also overlaps with many other (related) concepts and lacks empirical grounding. We offer recommendations for defining and measuring the concept, take a step toward disentangling it from related concepts, and identify relevant theories and research methods that would facilitate extending the knowledge frontier on shared value.

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Abbreviations

BoP:

Bottom of the pyramid

CAS:

Complex adaptive system

CSR:

Corporate social responsibility

CSV:

Creating shared value

NAB:

National Australia Bank

SVC:

Shared value creation

TRM:

Total responsibility management

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Authors and Affiliations

  1. Faculty of Business and Economics, University of Melbourne, 198, Berkeley Street, Carlton, VIC, 3010, Australia

    Krzysztof Dembek, Prakash Singh & Vikram Bhakoo

Authors
  1. Krzysztof Dembek
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  2. Prakash Singh
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  3. Vikram Bhakoo
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Corresponding author

Correspondence to Krzysztof Dembek.

Appendices

Appendix 1: Articles Included in the Second Step of the Analysis

1

Aakhus and Bzdak (2012)

2

Athanasopoulou and Selsky (2012)

3

Baraka (2010)

4

Bertini and Gourville (2012)

5

Bosch-Badia et al. (2013)

6

Bose et al. (2012)

7

Brown and Knudsen (2012)

8

Caligiuri et al. (2013)

9

Cao and Pederzoli (2013)

10

Carter and Greer (2013)

11

Chatterjee (2012)

12

Comini et al. (2012)

13

Condosta (2011)

14

Condosta (2012)

15

Danko et al. (2008)

16

Darigan and Post (2009)

17

Driver (2012)

18

Dubois and Dubois (2012)

19

Duran-Encalada and Paucar-Caceres (2012)

20

Dyda (2008)

21

Etzkowitz and Zhou (2012)

22

Fayet and Vermeulen (2014)

23

Fearne et al. (2012)

24

Fleming et al. (2013)

25

Florin and Schmidt (2011)

26

Follman (2012)

27

Hamann (2012)

28

Harrison and Coombs (2012)

29

Hartmann et al. (2011)

30

Hiller (2013)

31

Jackson (2012)

32

Juscius and Jonikas (2013)

33

Kendrick et al. (2013)

34

Kiran and Sharma (2011)

35

Kolodinsky and Bierly (2013)

36

Kruschwitz (2013)

37

Lassch and Yang (2011)

38

Leandro and Neffa (2012)

39

Leavy (2012)

40

Lee et al. (2012)

41

Mabaya et al. (2013)

42

MacGregor and Fontrodona (2011)

43

Mahindra (2012)

44

Maltz and Schein 2012

45

Maltz et al. (2011)

46

McGahan (2012)

47

Michelini and Fiorentino (2012)

48

Mohammed (2013)

49

Moon et al. (2011)

50

Pavlovich and Corner (2014)

51

Pfitzer et al. (2013)

52

Pirson (2012)

53

Porter and Kramer (2006)

54

Porter and Kramer (2011)

55

Sastry (2011)

56

Schmitt and Renken (2012)

57

See (2009)

58

Shaw and de Bruin (2013)

59

Shrivastava and Kennelly (2013)

60

Sojamo and Larson (2012)

61

Spitzeck et al. (2013)

62

Spitzeck and Chapman (2012)

63

Strand and Freeman (2013)

64

Szmigin and Rutherford (2013)

65

Topal and Toledano (2013)

66

Vaidyanathan and Scott (2012)

67

van der Lugt et al. (2013)

68

Verboven (2011)

69

Vermeulen (2013)

70

Vitasek and Manrodt (2012)

71

Wilbrun and Wilbrun (2013)

72

Wilson (2012)

73

Woolley (2011)

Appendix 2: Cases and Examples of Shared Value

Company

Example description

Type

Society and partners

Organization

Studies using the example

Data sources

Benefits

Costs

Benefits

Costs

11 unnamed fair trade organic clothing producers

Perceive shared value as composed of social, economic, environmental value. Explore success factors and obstacles to creating shared value. Main shared value success factors: value orientation, credibility, transparency in relationships to customers, knowledge, and innovation. Main obstacles (specific to fair trade apparel industry): shortage of supplies, customer cognitive frame, and investor inexperience

N/I

N/I

N/I

N/I

N/I

Schmitt and Renken (2012)

Interviews with CEOs and COO

28 L3C Companies

Provide two-dimensional view of shared value (customer value and public value proposition) that allows acknowledging strategy paradox in order to design innovative business models. Develops and tests strategy process model with 28 L3C companies

N/I

N/I

N/I

N/I

N/I

Florin and Schmidt (2011)

Interviews, emails, documents

32 unnamed organizations

Develop a framework for understanding conditions that generate initiatives with high shared value for global enterprises and society. Conclude that shared value is created when: companies have the capability to do so, when there is consistency between the creation of shareholder value and social value, and when social value can be cultivated beyond the enterprise that created the original initiative

N/I

N/I

N/I

N/I

N/I

Maltz and Schein (2012)

Interviews mostly with sustainability and CSR directors

50 + outsourcing relationships

Partnership with a “win–win” mindset or “what’s in it for us”

N/I

N/I

N/I

N/I

N/I

Vitasek and Manrodt (2012)

7 years of field research—informants not disclosed, full list of partnerships not provided

Amazon

Prime Service—provide two-day shipping for all orders for annual fee

Product

Clients—cheaper shipping

N/I

Increased sales (30 %) and share price

N/I

Bertini and Gourville (2012)

N/I

Amul Cooperative Society

Set up diary production—transformed milk-starved country into one with world-class Amul dairy products, i.e. milk, cheese, ice-cream, chocolate

Value chain

N/I

N/I

N/I

N/I

Mahindra (2012)

Own company

Anglo American

Provide employees, their families and closest communities in Africa access to free HIV retroviral treatment, and screening tests

Value chain

Improved health

N/I

Greater productivity, loyalty, employee’ sense of belonging

N/I

Condosta (2011)

Surveys, interviews, website, reports, other secondary sources

Basf Grameen

Provided multi-micronutrient sachets and interceptor mosquito nets

Product

Lower prices, employment, local entrepreneurial development, skill acquisition, access to service and products, increased quality of life

N/I

Access to markets and knowledge, increased CSR

Risks for long-term sustainability, complexity of governance

Michelini and Fiorentino (2012)

Presentations, reports, press releases, websites, publications

BASF, André Maggi Group, and Fundacao Espaco Eco in Brazil

Intend to provide empirical evidence of shared value strategies. Examines Andre Maggi Group farms’ creation of shared value using social-eco-efficiency analysis

Value chain

Improved social conditions

N/I

Enhanced triple bottom line thinking, increase in use of scenario planning to inform decisions

N/I

Spitzeck and Chapman (2012)

Interviews, participant observation, document analysis

Basf, Bayer, Dupont, Lanxess, Tessenderlo

Companies communicate sense of shared value creation through image campaigns. No specific examples provided

N/I

N/I

N/I

N/I

N/I

Verboven (2011)

Company websites

Becton–Dickinson

Needle-less injection system

Product

Health of healthcare workers

N/I

Increased revenue

N/I

Pfitzer et al. (2013)

FSG research

Boehringer Ingelheim

Health programs—financing external entrepreneurs to revolutionize access to basic healthcare

Value chain

N/I

N/I

Use gained knowledge

N/I

Pfitzer et al. (2013)

FSG research

BP (–)

Emission reduction, developing clean fuels contrasts events such as Mexican Gulf spill and wrong management

N/I

N/I

N/I

N/I

N/I

Brown and Knudsen (2012)

N/I

BracNET (–)

Brought wireless broadband internet to rural Bangladesh; later added sales of computing devices, provided financing, affordable renewable energy, and offered local language content provision and teacher training—criticized for drifting toward financial benefits and providing 50 % to a for-profit partner that brings funds

Product, value chain

Access to internet and technology

N/I

Profits

N/I

Pirson (2012)

Literature, published case studies

Britania

Milk Bikis and Tiger Biscuits fortified with iron, supplemented with education to address iron deficiency in children

Product

N/I

N/I

N/I

N/I

Vaidyanathan and Scott (2012)

FSG research

Chetna, Zameen, Oxfam, Trade Craft, ACF, SSM, Arvind, Prathiba, BioRe

Study different ways of inclusion of smallholder farmers to sustainable supply chains in cotton industry using 9 for profit and nonprofit organizations. Conclude that farmers can be involved in sustainable way only if provided with capacity building and extension services, which requires investment from organizations to create structures, institutions, capacities, extensions, certification, and supply chain tracking. All studied organizations operate under Organic, Fair Trade, or other similar certification

Value chain

Income, reduced use of chemical pesticides, improved health and education

Costs of certification

Access to raw materials

Initial investment to create infrastructure, capacity etc

Fayet and Vermeulen (2014)

Interviews

Cisco Systems

Cisco Systems’ Networking Academy founded in cooperation with public schools to train network administrators. Cisco donated equipment and trained teachers

Value chain

Millennium Development Goal (MDG) 16—decent and productive work for youth; MDG 8—partnerships for development

N/I for society. School provides infrastructure, teachers, and organizational structure

Access to network administrators (should increase demand for products). Training cost advantage leveraging on school infrastructure. Government goodwill

Costs of equipment donated

Lassch and Yang (2011) and Aakhus and Bzdak (2012)

N/I. Some data referenced

Coca-Cola

Examines social and inclusive business models as tools for shared value creation. Coca-Cola is an example of inclusive business. Do not provide a description of what company does

N/I

Employment, acquisition of new skills, access to services and quality products, increased quality of life

Oligopolistic market, profit orientation, loss of autonomy for suppliers

Increased sales and facilitated distribution

Negative image

Michelini and Fiorentino (2012)

Presentations, reports, press releases, websites, publications

Coca-Cola

Colectivo initiative in Brazil—partnership with NGOs -trained young people for two months in retailing, business development, and entrepreneurship; pairing them with local retailers to tackle specific improvement projects

Value chain

Increased employability of youth

N/I

Increased sales by strengthening distribution and brand awareness

N/I

Pfitzer et al. (2013) and Comini et al. (2012)

FSG research

Coca-Cola

Reduced 9 % of worldwide water consumption

Value chain

N/I

N/I

N/I

N/I

Porter and Kramer (2011) and Leavy (2012)

N/I

Credit Agricole

Specialized financial products related to environment (i.e. financing audits for organic certification)

Product

N/I

N/I

Differentiation

N/I

Porter and Kramer (2006)

N/I

Daewoo

Donated books, provided support for town events, expansion of education facilities for local communities in Nigeria and Zambia. Performed projects in Libya during sanctions, which helped country overcome economic difficulties

Not clear

N/I in Zambia and Nigeria. Economic benefits in Libya

N/I

N/I in Zambia and Nigeria. Economic benefits in Libya

N/I. Costs of donations assumed

Lassch and Yang (2011)

N/I

Danone

Sold off beer, meat and cheese unit, focusing on water, non-cheese diary, baby food, medical nutrition

Product

N/I

N/I

N/I

N/I

Pfitzer et al. (2013)

FSG research

Doosan Heavy Industries

Took less profitable projects ignored by larger companies for construction of desalination plants and providing water technologies

Product

Access to water

N/I

Market share

N/I

Moon et al. (2011)

Literature

Dow Chemical

Nexera sunflower and canola seeds used for producing oil with longer shelf life

Product

Income for farmers, lower trans and saturated fats content of the oils

N/I

Sales

N/I

Pfitzer et al. (2013)

FSG research

Dow Chemical

Reduced water consumption

Value chain

N/I

N/I

Financial savings

N/I

Porter and Kramer (2011)

N/I

Fabindia

Created community-owned company with artisan shareholders and directors, Fabindia significantly impacted sustainable livelihoods in rural sector, while helping Fabindia become one of largest private platforms for products made from traditional techniques, skills, and hand-based processes

Value chain

Improved livelihood

N/I

Growth

N/I

Mahindra (2012)

Own company

Ferrero

Examines social and inclusive business models as tools for shared value creation. Ferrero is an example of inclusive business. Do not provide a description of what company does

N/I

Employment, acquisition of new skills, access to services and quality products, increased quality of life

Profit orientation, loss of autonomy for the suppliers

Increased sales

Implementation costs, difficulty of controlling supply chain, long-term economic sustainability

Michelini and Fiorentino (2012)

Presentations, reports, press releases, websites, publications

GE (±)

Ecomagination—ecologically and socially beneficial products and services. Aakhus and Bzdak 2012 criticize GE arguing that Ecomagination delivered little to solve problem caused by company’s actions, i.e. polluting Hudson River

Product

N/I

N/I

Increased sales and revenue

N/I

Aakhus and Bzdak (2012), Porter and Kramer (2011, 2006), Hamann (2012) and Moon et al. (2011)

Websites (Aakhus and Bzdak 2012), N/I by other authors

GE and Embrace

Develop affordable healthcare products. Partnered to distribute affordable incubator (developed by Embrace not GE) for hospitals in India

Product

N/I—improved health issues assumed

N/I

N/I

Investment in R&D

Pfitzer et al. (2013)

FSG research

Google, Apple, Kindle

I-Tunes, Kindle, Google scholar—alter distribution systems

Value chain

Reduction in paper and plastic use

N/I

N/I

N/I

Porter and Kramer (2011)

N/I

Grameen Adidas

Introduced new model of footwear for 1 USD

Product

Lower prices, employment, local entrepreneurial development, skill acquisition, access to service and products, increased quality of life

N/I

Increased CSR

Risks for long-term sustainability and complexity of governance

Michelini and Fiorentino (2012)

Presentations, reports, press releases, websites, publications

Grameen Danone (±)

Provided yogurt enriched with micronutrients. Pirson criticizes strong shift toward social value creation; argues that organizational benefits are uncertain

Product, value chain

Better nutrition, lower prices, employment, local entrepreneurial development, skill acquisition, access to service and products, increased quality of life

N/I

Access to markets and knowledge, increased CSR

Risks for long-term sustainability, complexity of governance

Michelini and Fiorentino (2012) and Pirson (2012)

Presentations, reports, press releases, websites, publications

Grameen Intel

Provided services and technology at affordable prices

Product, value chain

Lower prices, employment, access to new services and products, increased quality of life

N/I

N/I

Risks for long-term sustainability, complexity of governance

Michelini and Fiorentino (2012)

Presentations, reports, press releases, websites, publications

Grameen Phone (–)

Provided affordable access to phone service in rural Bangladesh. Pirson criticizes domination of financial focus and incidents of unethical behavior i.e. child labor, violation of laws regulating use of VOIP protocol

Product, value chain

Income—combat poverty

N/I

Profits

N/I

Pirson (2012)

Literature, published case studies

Grameen Veolia

Provided affordable drinking water

Product, value chain

Lower prices, employment, local entrepreneurial development, skill acquisition, access to service and products, increased quality of life

Privatization of public goods

Increased CSR

Risks for long-term sustainability, complexity of governance

Michelini and Fiorentino (2012)

Presentations, reports, press releases, websites, publications

Gyeongnam

Donation for emergency relief in Sri Lanka after 2004 earthquakes; construction projects in this country

N/I

N/I

N/I

N/I

N/I

Lassch and Yang (2011)

N/I

H&M

Describe suppliers and industry peers (i.e. competitors) as partners. Reject narrow economic view of firm through addressing issues of human rights of children in partnership with Unicef and Save the Children

N/I

Advances interests of Unicef and Save the Children, giving them better access to children

N/I

More stable supplies

N/I

Strand and Freeman (2013)

Company websites and literature

Heineken

Fight AIDS among African employees offering treatment to employees and their relatives

Value chain

Health

N/I

Economic due to less employee turnover and absenteeism; Higher employee motivation; Public goodwill

2 million dollars a year

Lassch and Yang (2011)

N/I. Some data referenced

Hilti

Fleet Management program—monthly fee tool hiring program

Product

Reduced financial planning, administrative work, and downtime

N/I

Market share

N/I

Bertini and Gourville (2012)

N/I

HP

Machine that scans, prints, and transmits data, used to accelerate diagnosis and treatment of HIV in children

Product

N/I—improvement in HIV detection assumed

N/I

Increased demand for product

N/I

Pfitzer et al. (2013)

FSG research

Ikea

Unassembled furniture (Ikea finds cheap, good looking furniture, customers assemble them)

Product

N/I

N/I

N/I

N/I

Bertini and Gourville (2012)

N/I

Ikea

Examines social and inclusive business models as tools for shared value creation. Ikea is an example of inclusive business. Do not provide a description of what company does

N/I

Employment, acquisition of new skills, local entrepreneurial development, increased quality of life

Profit orientation, loss of autonomy for suppliers

Increased supply chain sustainability and CSR

Implementation costs, difficulty of controlling supply chain, non-profitable market and social instability, negative image

Michelini and Fiorentino (2012)

Presentations, reports, press releases, websites, publications

Ikea

Reject narrowly economic view of firm through addressing issues of human rights of children in partnership with Unicef and Save the Children

N/I

Advances interests of Unicef and Save the Children giving them better access to children

N/I

More stable supplies

N/I

Strand and Freeman (2013)

Company websites and literature

Intel

Trained teachers in technology use

Value chain

Improved educational outcomes

N/I

Profits

N/I

Pfitzer et al. (2013)

FSG research

J.C.Penney

Three types of simple, transparent pricing: everyday, month-long, clearance, and all prices end in .00, not in .99

Product

N/I

N/I

N/I

N/I

Bertini and Gourville (2012)

N/I

Jain Irrigation

Manufactures water drip irrigation systems. Demand for water saving technology allowed growth in revenue

Value chain

N/I

N/I

Growth at a compound annual rate of 41 %

N/I

Porter and Kramer (2011)

N/I

Johnson&Johnson

Helps employees stop smoking (75 % reduction in 15 years), and introduced wellness programs

Value chain

N/I

N/I

Savings in healthcare costs, more productive workforce

N/I

Porter and Kramer (2011) and Leavy (2012)

N/I

Johnson&Johnson

Recall of Tylenol capsules from market as response to cyanide contamination in 1982

Value chain

N/I

N/I

N/I

N/I

Szmigin and Rutherford (2013)

Literature

Kemira

Set up R&D activities to create new ways of increasing customers’ water and energy efficiency

Product

N/I

N/I

N/I

N/I

Pfitzer et al. (2013)

FSG research

London Olympic games

Pricing tickets for sporting events in a way that provides access for everybody

Product

Access to events

N/I

Profits

N/I

Bertini and Gourville (2012)

N/I

Mahindra Group

Designed and produced small tractor for 5 acres or less land; trained women how to drive tractors (due to exodus of men to the city jobs)

Product

Productivity

N/I

Income

N/I

Mahindra (2012)

Own company

Mahindra Navistar Automotive Ltd.

Employed and prepared early retirees from armed forces to train new drivers for their new vehicles

Value chain

Employment

N/I

Sales, product awareness

N/I

Mahindra (2012)

Own company

Marks & Specer

Stopped shipping across hemispheres

Value chain

Reduced carbon emissions

N/I

Financial savings

N/I

Porter and Kramer (2011) and Hamann (2012)

N/I

Marriott

Provided 180 paid hours of training for chronically unemployed

Value chain

Jobs

N/I

Access to loyal employees

N/I

Danko et al. (2008) and Porter and Kramer (2006)

N/I

Mars

Created long term cross-sector collaboration to improve productivity of cocoa by introducing innovations such as super cocoa clones, providing access to fertilizer, training and grafting services

Product, value chain

N/I

N/I

Access to resources

N/I

Pfitzer et al. (2013)

FSG research

Merck (–)

Disastrous airing of its ‘Where Patients Come First’ campaign same time Merck was forced to recall Vioxx (drug found to increase risk of heart attacks in some patients)

Product

N/I

N/I

N/I

N/I

Brown and Knudsen (2012)

N/I

Microsoft

Working Connections—Reduce shortage of information technology workers by helping colleges develop IT curricula, sending employees as volunteers to assess college needs, and creating faculty development institutes

Value chain

N/I

N/I

Address shortage of IT employees

50 mln dollars over 5 years and employee volunteering

Danko et al. (2008), Porter and Kramer (2006) and Moon et al. (2011)

N/I

Nestle

Milk districts—company created programs educating local farmers on effective farming procedures, providing services like veterinary, and expert advice supporting them with financial micro-credit aids, paying in cash when collecting milk, and creating local collection points close to farmers

Value chain

Income, improved healthcare, economic development, better education

N/I

Access to raw materials of good quality, profits

Investment in local infrastructure and knowledge transfer

Aakhus and Bzdak (2012), Condosta (2011), Kiran and Sharma (2011), Moon et al. (2011), Porter and Kramer (2006) and Vaidyanathan and Scott (2012)

Survey and interviews, website, reports and other secondary sources (Condosta 2011);

FSG research (Vaidyanathan and Scott 2012); Other authors do not mention sources

Nestle

SAI Platform (sustainable agriculture initiative) created with other companies to develop sustainable sourcing and rural development. Ten times bigger than on all niche market approaches, i.e. organic, fair trade, or others

Value chain

N/I

N/I

N/I—secured sourcing of good quality products assumed

N/I

Kruschwitz (2013)

Interview with Hans Joehr, Nestlé’s corporate head of agriculture

Nestle

Examines social and inclusive business models as tools for shared value creation. Nestle is an example of inclusive business. Does not provide description of what company does

N/I

Employment, local entrepreneurial development, skill acquisition, access to service and products, increased quality of life

Oligopolistic market, profit orientation, loss of autonomy for the suppliers

Enter new markets

Implementation costs, non-profitable market, and social instability

Michelini and Fiorentino (2012)

Presentations, reports, press releases, websites, publications

Nestle

Introduced Maggi Masala-ae-Magic—nutrient reinforced spices in India

Product

Increased nutrient intake

N/I

Sales

N/I

Pfitzer et al. (2013)

FSG research

Nestle

Nespresso—helps farmers grow more coffee, build coffee clusters, and redesigned procurement among others by providing advice on farming practices, guaranteeing bank loans, helping secure inputs such as plant stock, pesticides, and fertilizers

Value chain, cluster

Better yields per hectare, production quality and thus greater income, decreased environmental impact of the farms

N/I

Reliable coffee supplies

N/I

Porter and Kramer (2011)

N/I

Nestle, Cargill, Bunge

Examines agency of corporations in global water security. Only Nestle openly engaging in shared value over water management. However, study finds its shared value programs mostly an outward expression, marketed for consumers. Objectives, targets and challenges in relation to water management remain unidentified. Impact of shared value programs on water security debatable and cannot be verified. All companies approach water management from a profit-making perspective, addressing mostly non-consumptive water use which. Corporations “are powerfully framing discourses on water without necessarily addressing all the complexity around it, influencing national and international policies besides their direct operations” p. 630

N/I

N/I

N/I

N/I

N/I

Sojamo and Larson (2012)

Semi-structured interviews with different stakeholders

NIKE (–)

Investment in codes of conduct and auditing of supply chain contrasts with lowest possible cost purchase policy

Value chain

Working conditions

Damaging lowest price supply chain policy. No child labor policy potentially damaging for 14-17 year olds who finished compulsory education

N/I

N/I

Brown and Knudsen (2012)

N/I

Norsk Hydro

Advance cooperative strategic posture as main element of “Hydro Way.” Reject narrow economic view of firm partnering with Amnesty International to address human rights issues. Amnesty International provides training in Norsk Hydro

N/I

N/I

N/I

N/I

N/I

Strand and Freeman (2013)

Company websites and literature

Novartis

Integration of disabled in Brazil. Hired 116 disabled people; created diversity and inclusion team to evaluate accessibility of its infrastructures and define changes to be made

Value chain

Sense of belonging and income for disabled

N/I

Compliance with legislation

N/I

Condosta (2011)

Survey and interviews, website, reports and other secondary sources

Novartis

Arogya Parivar (healthy family)—created healthcare clusters targeting 11 diseases areas with selected drugs, lowered prices, established distribution, and education networks in India to increase access for remote villages

Clusters

N/I

N/I

Profits

Investment in local distribution and training

Pfitzer et al. (2013) and Vaidyanathan and Scott (2012)

FSG research

Novo Nordisk

Uses organizational culture and values as basis of a management system

Value chain

N/I

N/I

N/I

N/I

Brown and Knudsen (2012)

N/I

Novo Nordisk

Novo Nordisk considers itself only one element within stakeholder network; does not perceive itself in center of this network

N/I

N/I

N/I

N/I

N/I

Strand and Freeman (2013)

Company websites and literature

Novozymes

Demonstrates a mature state of stakeholder engagement by employing stakeholder language, adopting cooperative strategic posture, and referring to jointness of interests between company and stakeholders

N/I

N/I

N/I

N/I

N/I

Strand and Freeman (2013)

Company websites and literature

Odebrecht

Construction of a dam in Amazons with implementation of training program Acreditar

Value chain

Employment and income, lower environmental impact due to use of new technology

N/I

Access to workforce, decreased social opposition to dam resulting in earlier start of energy production, profitability, reduced labor costs, improved reputation

18 million dollars for training people (many were employed after training)

Spitzeck et al. (2013)

Interviews, participant observation, document analysis

Odebrecht

Construction of road connecting Iñapari with San Juan de Mancona in Peru with initiatives aimed at improving health and education, and to develop sustainable forms of tourism to enable communities to benefit from new highway

Value chain

Employment, income, literacy, improved skills

N/I

Cheaper financing due to partners

3 million dollars (leverages to 12.5 by the partners)

Spitzeck et al. (2013)

Interviews, participant observation, document analysis

Olam International

Open local processing plants in African countries instead of shipping nuts to Asian plants

Value chain

Reduced carbon emissions, employment (directly and indirectly)

N/I

Decreased processing and shipping costs; Better relationships with local farmers

N/I

Porter and Kramer (2011)

N/I

P&G

Provided PUR sachets for purifying water

Product

Access to service and products, increased quality of life

N/I

New market segments, and increased CSR

Implementation costs

Michelini and Fiorentino (2012)

Presentations, reports, press releases, websites, publications

Petroleros mexicanos (PEMEX)

Develop system dynamics model of sustainability implementation in an organization and run simulation of model using case of Pemex. According to the model “when the variable concept of sustainability rises, there is a positive link with shared value, indicating that stakeholders are able to find a larger common ground regarding their social, economic, and environmental interests.” p. 1069 which leads to increased sustainable initiatives. Provide no particular examples of shared value

N/I

N/I

N/I

N/I

N/I

Duran-Encalada and Paucar-Caceres (2012)

GRI Website

Port Authorities

Port authorities are shared value organizations because they present public aspects like ownership and funding, but act in competitive environment and are increasingly accountable for their performance, both from economic and societal perspectives. No specific case provided

N/I

N/I

N/I

N/I

N/I

van der Lugt et al. (2013)

Literature

Revolution Foods

Provided 60000 healthy meals to students with profits greater than competitors

Product

N/I

N/I

N/I

N/I

Porter and Kramer (2011)

N/I

Root capital

Provides financing to farmers and businesses too large for micro financing, too small for traditional bank financing

Product

N/I

N/I

N/I

N/I

Porter and Kramer (2011)

N/I

Santam

Insurance company that instead of raising premiums, took proactive approach to management of risk related to climate change (flood and fire); company in partnerships with farmers and municipalities undertook activities aiming to reduce hard surfaces in sensitive areas of catchment, unblock and extend critical drainage systems, reduce spread of invasive alien plants, avoid tilling close to streams, improve estuarine management practices

Value chain

Reduced risk of floods and fires; No higher premiums; Improved natural environment

N/I

Reduced risk of floods and fires

N/I

Hamann (2012)

N/I

Shenzen telecom

Design simpler and clearer invoice for customers

Product

N/I

N/I

Savings (on handling complaints) increased customer satisfaction and loyalty

N/I

Bertini and Gourville (2012)

N/I

SKF Group

Price value for customer instead of product. Splitting benefits between firm and customer

Product

Monetary savings

N/I

Profits

N/I

Bertini and Gourville (2012)

N/I

Southwest, JetBlue, Virgin America

Provide many amenities free, that others charge for

Product

N/I

N/I

N/I

N/I

Bertini and Gourville (2012)

N/I

Statoil

Programs for supplier and underdeveloped region development, anti-corruption initiatives, and clear health and safety standards for all of its operations, minimizing damage to environment

Value chain

N/I

N/I

N/I

N/I

Brown and Knudsen (2012)

N/I

Statoil

Demonstrates cooperative strategic posture; considers stakeholder interests broadly

N/I

N/I

N/I

N/I

N/I

Strand and Freeman (2013)

Company websites and literature

Sysco

Offered locally grown products to customers

Product, value chain

Preserve local farms

N/I

Competitive differentiation

N/I

Porter and Kramer (2006)

N/I

Technoserve

Partnered with global and local corporations to promote the development of agricultural clusters in 30 countries

Clusters

N/I

N/I

N/I

N/I

Porter and Kramer (2011)

N/I

Thomson Reuter

Provides weather, crop pricing information and agricultural advice for fee of 5 USD per quarter

Product

Increased income in 60 % of customers

N/I

N/I

N/I

Porter and Kramer (2011), Moon et al. (2011), Follman (2012) and Leavy (2012)

N/I

Ticketmaster

Disclose the additional fees earlier in the checkout process of online purchase

Product

N/I

N/I

N/I

N/I

Bertini and Gourville (2012)

N/I

Toyota (±)

Prius—uses less petrol. However, benefits due to lower emissions go with losses due to safety problems

Product

Less environmental damage

Safety problems

Competitive advantage

N/I

Brown and Knudsen (2012), Danko et al. (2008), Porter and Kramer (2006) and Moon et al. (2011)

N/I

Unilever

Developed products, packaging and distribution systems for the poor

Product, value chain

N/I

N/I

N/I

N/I

Porter and Kramer (2006)

N/I

Unilever

Shakti—distribute basic FMCG products through poor women-distributors

Value chain

Reduction in communicable diseases, increased skills and income

N/I

Increased revenues

N/I

Porter and Kramer (2011), Follman (2012) and Leavy (2012)

N/I

Urbi

Payment system (rent-to-own) provides access to housing

Product

Access to housing

N/I

Profit

N/I

Danko et al. (2008), Porter and Kramer (2006,2011)

N/I

Vodafone & Safaricom

M-Pesa—payment systems via mobile

Product

Access to financial services and communication results in increased employment, income, savings

N/I

Profits

N/I

Pfitzer et al. (2013), Moon et al. (2011), Jackson (2012), Porter and Kramer (2011)

FSG research (Pfitzer et al. 2013); Published reports (Jackson 2012); other authors do not mention sources

Walmart

Reduced price on generic drugs by 75 %

Product

Reduced cost of treatment; better follow up of prescription (not skipping doses) which leads to decrease in overall cost for the system

N/I

Increased sales of other products; competitive advantage by forcing competitors to make unprofitable moves

Increased costs of operation due to increased store traffic

Maltz et al. (2011)

Publicly available data from company, websites, and literature

Walmart (±)

Sustainable supply chain initiative—provide suppliers with guidelines to reduce packaging and CO2 emissions, retouring trucks, buying from local farmers. Brown and Knudsen criticize Walmart for maintaining highly damaging lowest price supply chain policy

Value chain

Reduce waste and CO2 emissions; reduced costs

Highly damaging lowest price supply chain policy

Reduce overall costs of doing business

500 million investment a year

Brown and Knudsen (2012), Maltz et al. (2011), Moon et al. (2011), Porter and Kramer (2011) and Leavy (2012)

Publicly available data, websites, literature (Maltz et al. 2011); other authors do not mention sources

Waste Concern

Converts 700 tons of rubbish into fertilizer daily

Value chain, product

Increased crop yields and decreased CO2 emissions; Improved health

N/I

Gross margin—profit

N/I

Porter and Kramer (2011)

N/I

Water Health International

Uses innovative water purification techniques to distribute clean water at minimal cost to more than 1 million people in rural India, Ghana, and the Philippines

Product

N/I

N/I

N/I

N/I

Porter and Kramer (2011)

N/I

We’ re

Yoga clothing company with holistic approach to shared value—set up production in Bali to increase skill and employment, using organic, fabric and natural dying processes and water consumption reduction systems, involved in movement of increased production of organic cotton

Product, value chain

Less environmental impact, income for communities

N/I

Differentiation and sales

Higher manufacturing costs

Pavlovich and Corner (2014)

Interviews

Wells Fargo

Developed line of products and tools that help customers budget, manage credit, pay down debt

Product

N/I

N/I

N/I

N/I

Porter and Kramer (2011)

N/I

Whole foods

Sells organic food; runs its stores in environmentally friendly way. Entire value proposition built around social issues

Product, value chain

Environmentally friendly operations (no impact on environment mentioned)

N/I

Premium prices, distinction from competitors

N/I

Porter and Kramer (2006)

N/I

Woolworths

“Farming for the future” program of direct engagement with farmers in company’s value chain to enhance their productivity

Value chain

Better productivity, decreased use of pesticides, environmental benefits from more natural farming methods

N/I

Access to resources (products to sell)

N/I

Hamann (2012)

N/I

Yara

Fertilizer company—built agricultural growth corridors in Mozambique and Tanzania

Cluster

Employment

N/I

Business growth

60 million dollars

Jackson (2012) and Porter and Kramer (2011)

N/I

  1. N/I not identified, − negative example, ± example used both negatively and positively

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Dembek, K., Singh, P. & Bhakoo, V. Literature Review of Shared Value: A Theoretical Concept or a Management Buzzword?. J Bus Ethics 137, 231–267 (2016). https://doi.org/10.1007/s10551-015-2554-z

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